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Guy,
If I was going to buy IOM calls they would be the May 30s (IOMEF
bid 3 3/4, Asked 4 1/8). Since there aren't any LEAPS on IOM, the May
30s will have the least time decay per day.
However, I wouldn't buy yet. IOM is in a Short Term Down Trend
Channel (STDTC) with no signs of breaking out of it and is still above
the bottom of my Intermediate Term Up Trend Channel (ITUTC). I have
the bottom of the ITUTC at 23 5/8 since I am using the 10/28/97 low as
one of the markers for the bottom of my channel. I understand your
point about the validity of the 10/28 point, but used it per the
Trader Vic methodology. However, if the bottom of the up trend
channel is in doubt, it's even more important that the STDTC be broken
before entering.
I'll send a copy of my IOM.GIF chart by separate post. Best of
luck if you decide to proceed.
Jim
-----Original Message-----
From: Guy Gordon <gordon@xxxxxxxxxxx>
To: Jim Greening <JimGinVA@xxxxxxxxxxxxx>
Cc: metastock-list@xxxxxxxxxxxxx <metastock-list@xxxxxxxxxxxxx>
Date: Thursday, December 11, 1997 2:58 PM
Subject: Re: IOM
Jim,
IOM hit 26 today. I'm looking to buy Jan Calls on Friday.
Do you think the 25 or 30 Calls would be better. I'm leaning towards
the $30 out of money calls.
I had IOM in one channel from 3/25/97 thru 10/2/97. The bottom of
that channel coincided with the 50-day MA.
On 10/2/97 the 50-day MA bent and IOM started moving in a new, less
steep channel. I draw the top of the new channel through the highs of
9/19/97 and 12/1/97. I don't have a firm bottom to the new channel,
but I think it's around 25.3. The problem with drawing the bottom is
that I'm not sure the opening price on 10/28/97 has much validity.
For now, I'm drawing the bottom as a line thru the low of 10/7/97 and
parallel to the 50-day MA.
I don't think these correspond to the channels you draw. care to
comment?
On Tue, 9 Dec 1997 14:40:59 -0500, Jim Greening wrote:
> I was busy this morning so left a market order to close my IOM
>position at the open. IOM had bounced off the top of its
Intermediate
>Term Up Trend Channel (ITUTC) early last week and broke out of the
>bottom of its Short Term Up trend Channel Thursday. If finally
closed
>below my stop yesterday. I had a profit of over 60% since taking the
>position in April plus several covered call profits along the way.
> I still like IOM and will be looking to re-enter on a bounce off
>the bottom of the ITUTC or a break out of the new Short Term Down
>Trend Channel.
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